Jakarta. Indonesian property giant Lippo Karawaci Tbk (LPKR) has sold a majority stake in Siloam International Hospitals (SILO) to Singapore's Sight Investment Company Pte Limited, which is indirectly owned by CVC Capital Partners, for Rp 16.68 trillion ($1.05 billion).

In a tender offer announcement published in Investor Daily, Prime Health Company Limited, owned by CVC, and Megapratama Karya Persada, owned by Lippo Karawaci, released 5.85 billion shares, representing 45 percent of the total shares in Siloam Hospitals.

As a result of this transaction, Megapratama Karya Persada’s ownership of Siloam decreased from 39.17 percent to 19.45 percent. Meanwhile, CVC’s Sight Investment Company Limited’s ownership increased from 10.4 percent to 55.4 percent. Additionally, Prime Health Company Limited’s stake dropped from 26.18 percent to 13 percent, and public ownership fell from 15.56 percent to 7.73 percent.

The shares were offered at a price of Rp 2,850, a 10.08 percent premium above the highest average daily trading price on the IDX over the 90 days preceding July 1, 2024, the date of the tender offer announcement.

Siloam Hospitals is one of the largest private hospital networks in Indonesia, with over 41 branches and 25 clinics.

Siloam's revenue for the January-June 2024 period grew 13.90 percent year-on-year (yoy) to Rp 6.01 trillion compared to Rp 5.28 trillion in the same period the previous year. However, despite the revenue increase, net profit attributable to the owners of the parent entity decreased to Rp 314.28 billion, down from Rp 503.36 billion in the same period in 2023.